Can You Mine Litecoin? Complete Guide for Beginners

Published: April 6, 2024 | Last Updated: March 26, 2024

Hudson Kisia

Hudson Kisia has been researching and writing content for ElementalCrypto since 2022. He has been writing about crypto, blockchains, and mining for more than 5 years now.

Yes! You can mine Litecoin.

Mining Litecoin is a lucrative venture whose block reward can give you good profits.

The price of Litecoin (LTC) has performed historically well and has been relatively stable over time. This makes it reliable and hence attracts long-term demand that makes LTC mining not only viable but also profitable in the long term.

Why mine Litecoin?

New LTC coins
New LTC coins

Litecoin is one of the oldest cryptocurrencies in the mining industry. This reputation, coupled with the fact that it is a decentralized cryptocurrency with no risk of being manipulated by a central authority, makes it the best alternative to fiat money. However, like other cryptocurrencies, you need to participate in mining it so that it can be available for use. With the best hardware and a good mining program, you are on the way to earning great mining rewards and good profits

Furthermore, Litecoin is a cheaper, faster, and more efficient alternative to Bitcoin mining. Both Litecoin and Bitcoin employ the Proof of Work (PoW) algorithm. Litecoin employs the Scrypt algorithm while Bitcoin employs the SHA-256 algorithm. This hashing algorithm has a lower mining difficulty factor compared to many PoW mining algorithms.

While the block reward for mining new coins on the Litecoin blockchain network is significantly lower than that of Bitcoin, the Litecoin mining algorithm can enable you to mine more new blocks and thus earn more mining rewards on a volume basis.

In this article, I am going to provide you with the most important information on how to mine Litecoin that you need to get started.

How to mine Litecoin

how to mine litecoin
How to mine litecoin

The following are the key steps to mining Litecoin:

1. Choose the right Litecoin mining method

Your chosen mining method can determine how much initial capital you need to get started. It also determines the type of Litecoin mining hardware you are going to use and the final mining rewards you are going to earn.  

Solo mining, pool mining, and cloud mining are the three mining methods that you use on the Litecoin network.  

Let’s explore each of these LTC mining methods one by one.

Solo mining

If you love being a lone wolf, then, solo mining is a good option for you. In this method, you reap all the Litecoin cryptocurrency mining rewards. On the other hand, you bear all the costs and risks associated with cryptocurrency mining.

This method is more capital-intensive since you have to provide all the required computational power for Litecoin mining. This means that you will need to buy or build a Litecoin mining rig with a high hash rate to meet both the computational power needs and your desire to make good profits.

High computational power means high power consumption and thus high electricity costs. Hence, you should be prepared to invest more in electricity supply.

Pool mining

Pool mining is a popular alternative to solo mining. The big advantage of joining a Litecoin mining pool is that you share the cost of the Litecoin mining operation with other pool members. Thus, you don’t have to buy or build an expensive Litecoin mining rig since the computational power is contributed by members with each providing just a small fraction of it. This is also a good way to minimize cryptocurrency mining risks.

Different mining pools have different requirements. These include minimum hash rate contribution, mining fee, block reward sharing formula, payout methods, and the minimum payout amount. Make sure that you have factored these important things as part of your choice criteria.

While you sacrifice a part of your autonomy and reward by joining a mining pool, it is one the best investment decisions to make when you don’t want to incur the entire burden of all the investment costs and risks. This is especially ideal for newbie startups.

Nonetheless, joining a Litecoin mining pool gives you unique benefits. For example, your chances of earning a steady income from consistent rewards are higher compared to any other method.  

Some of the best LTC mining pools include:

 

Cloud mining

If you are a beginner or busy person or simply don’t want to be involved in the technical aspects of handling a Litecoin mining rig, you can opt for cloud mining.

As a cloud miner, all you need is to simply hire computational power from a cloud mining service provider. Thus, you don’t have to buy any mining equipment since that is borne by the cloud mining service provider. You will be provided with an online user interface – web-based or mobile-based to access and monitor the performance of your cloud Litecoin mining process. Even if you don’t have time to monitor the process, you will still get reports on the performance of your cloud mining operation.

This is the cheapest and most cost-effective method of mining. However, you surrender a huge chunk of your mining rewards to the cloud mining service provider.

If you consider the opportunity cost of time and the opportunity cost of risk-taking, you will find that cloud mining is the best way if you are a beginner, busy, or risk-averse investor. Furthermore, you not only leverage the advantages of economies of scale that come with running the best cryptocurrency mining rigs in large-scale mining farms but also let the professionals do their best on your behalf.

2. Choose the most optimal Litecoin mining hardware

Litecoin mining rig
Litecoin mining rig

Choosing the right mining hardware for your Litecoin mining operation could make the difference between making a profit or loss. Thus, you need to know how to choose the right hardware.

How to choose the best mining hardware for Litecoin

The following guidelines will enable you to choose the right mining hardware:

(i) Know the major types of mining hardware

It is a no-brainer that without knowledge, your choices are limited. Hence, a higher chance of making the wrong choice. Thus, it is important to know the major types of mining hardware so that you can make an informed decision.

Most cryptocurrency mining equipment is differentiated based on the type of mining hardware processor.

The following are the main types of mining hardware processors:

  • Central Processing Unit (CPU) – The CPU is the one that runs your smartphone, tablet, laptop and desktop. It is the main processor for personal computers (PCs).
  • Graphics Processing Unit (GPU) – GPU is used mostly on graphic cards. It is the one used to run video gaming equipment. Some PCs have lightweight GPUs embedded in their motherboards. GPU miners are more powerful than CPU miners.
  • Field-programmable Gateway Array (FPGA) – FPGA has a programmable chip making it easily customizable. FPGAs can be as powerful as CPUs and GPUs. However, FPGA mining rigs are designed to be more powerful than GPU mining rigs.
  • Application-specific Integrated Circuit (ASIC) – ASICs are designed with a specific mining algorithm in mind. For example, ASIC Scrypt miner cannot be used to mine Bitcoins and vice versa.
(ii) Choose a miner that complies with your mining method

Your chosen mining method will determine how much hash rate that you will need to provide to the LTC mining operation. If you are a solo miner, you will have to provide all the hash power, meaning that you will need a much more powerful miner than you would need if you were a pool miner.

On the other hand, if you are doing cloud mining, you don’t have to bother about buying LTC mining equipment.

(iii) Choose hardware with the most optimal mining power

When it comes to optimal mining power, it is not just the hash rate that counts. Other factors also count.

These include:

  • Hash rate
  • Power consumption
  • Power efficiency
  • Software compatibility
Hash rate

The standard unit for measuring mining power is the hash rate. Typically, for CPU mining rigs, this is expressed in terms of Kilo-hash per second (KH/s), while for GPU mining rigs this is expressed in terms of Mega-hash per second (MH/s). For advanced Field-Programmable Gate Arrays (FPGA) this is typically expressed in terms of Giga-hash per second (GH/s). For ASIC miners, this is expressed in Tera-hash per second (TH/s). Nonetheless, low-power FPGAs share the same rating that of a CPU or GPU. Sometimes Solutions (Sols) instead of Hashes are used e.g., Sols/s, KSol/s, MSol/s, GSol/s, TSol/s, etc.

Other factors being the same, the higher the hash rate, the better the Litecoin mining rig. This is because the higher the hash rate, the easier it is to meet the LTC mining difficulty factor threshold. This increases your chance of mining new blocks of LTC coin and thus earning block reward.

Power consumption

Energy costs form a huge chunk of the mining costs. Thus, the cost of electricity is a significant factor in determining your Litecoin mining rig. The power consumption rating of your given LTC mining hardware counts a lot. Other factors being the same, the lower the power consumption the better the Litecoin mining rig.

Energy efficiency

While power consumption is an important factor, energy efficiency counts more. Energy efficiency is determined by how much hash power is produced by one unit of electric power. Other factors being constant, higher power efficiency means higher profitability.

(iv) Choose a miner that maximizes profitability

Having expensive equipment does not guarantee good profits. The profitability of crypto mining rigs is determined by several factors. The following are the important factors:

  • The mining method
  • Computational power
  • Energy efficiency
  • The rate of block reward

The Litecoin mining calculator is the best tool that you can use to estimate how much profit you are likely going to make from your LTC mining equipment.

The following are some of the best LTC mining calculators to use:

If you are a solo miner, you need to factor the following in your profit computation:

  • LTC block reward
  • Hash rate
  • LTC mining difficulty factor
  • Electricity cost (KW/h)
  • Opportunity cost of your mining hardware

In case you are a pool miner, you need to consider the following additional factors:

  • The mining fees
  • The mining rewards sharing formula
(v) Choose hardware compatible with your mining software

While mining software is generally easy to use, it can disguise complexities at the technical level. Thus, for a general user, there isn’t much of a problem.

However, if you are an advanced technical user who wants to customize the software to cater to unique needs and functionalities, then, you are better off considering an open source LTC mining software that you are familiar with its algorithm.

Thus, the priority will be on hardware that matches your software rather than software that matches your hardware.

(vi) Choose a miner that fits your budget

You need to carry out a basic cost-value-price analysis to find a Litecoin mining rig that meets your cost requirements (operational cost), value requirements (hash power), and price requirements (affordability).

The Best Litecoin mining rigs

In the early days, it used to be possible for individual miners to mine LTC using CPU and GPU mining rigs. However, as the difficulty factor for solving complex mathematical problems has gone high, that is no longer viable. The best way to harvest good profits is to use ASIC mining rigs.

The following are the best Litecoin miners that grant you a better chance of turning profits:

(I) Atminer L7
Bitmain Atminer L7
Bitmain Atminer L7

With a hash rate of 9.5 GH/s, Bitmain Antminer L7 is by far the most powerful ASIC mining rig for LTC mining from Bitmain. This is a powerful machine that is great for professional solo miners.

(ii) Antminer L3+
Bitmain Atminer L3+
Bitmain Atminer L3+

As a predecessor to Antminer L7, the Bitmain Antminer L3+ is a low-entry LTC ASIC miner with an impressive speed of 600 MH/s. It boasts a reasonably low power consumption rating of just 850W. This makes it ideal for individual miners who are on a low budget.

(iii) Goldshell LT6
Goldshell LT6
Goldshell LT6

For those seeking an LTC ASIC miner that is more powerful than Antminer L3+ yet affordable, Goldshell LT6 is the answer. It has a hash rate of 3.35 GH/s with a 3200W power rating.

(iv) Goldshell LT5 Pro
Goldshell LT5 Pro
Goldshell LT5 Pro

If you consider the Goldshell LT6 price tag as high and you wouldn’t mind a slightly lower hash rating, you can opt for the Goldshell LT5 Pro. This LTC ASIC Scrypt miner has a hash rate of 2.45 GH/s with a power consumption rating of 3100W.

 

3. Choose the best Litecoin mining software

In choosing your best Litecoin mining software, the following are important factors that you need to consider:

  • Compatibility with your preferred Litecoin mining hardware
  • Compatibility with your mining method
  • Customization options
  • Integrations with your preferred Litecoin wallet
  • Affordability
  • Ease of use

The following are some of the best LTC mining software:

(a) CGMiner

CgMiner LTC mining software
CgMiner LTC mining software

This is an open-source, free, and versatile LTC mining software that supports various categories of hardware including GPU, FPGA, and ASIC miners. Apart from working on the Linux Operating System, it also supports Windows and Mac OS.

(b) Multiminer

Multiminer LTC mining software
Multiminer LTC mining software

If you find CGMiner’s command-line interface difficult to handle, the Multiminer’s graphic user interface will serve you well. Other than Windows Operating System, it also supports Linux and Mac OS. Apart from being able to run on GPUs, FPGAs, and ASICs, it can also be run remotely.  

(c) EasyMiner

EasyMiner LTC mining software
EasyMiner LTC mining software

As the name suggests, EasyMiner is not only lightweight but also has a user-friendly interface. It boasts advanced customization parameters and automatic LTC wallet creation. It supports CPU and GPU mining.

 

4. Assemble your mining rig

In case you prefer assembling your own custom Litecoin mining rig instead of buying a ready-made one, now is the time to assemble one.

However, if you lack technical know-how to assemble one, or you don’t have time to do it, then, buy a ready-made mining rig.

5. Start mining

Once you’ve assembled or bought your mining rig and tested it to ensure that it is working properly, you can start mining to earn those lucrative LTC mining rewards.

Well, before you begin, make sure that:

  • You have a Litecoin wallet that is compatible with your preferred hardware wallets
  • You have linked your mining account to your cryptocurrency wallet address

6. Effectively manage your mining operation

Litecoin mining is a business. To stand a better chance of reaping good profits, you must effectively manage your LTC mining operations.

If you aspire your LTC mining venture to grow big in the long run, learn how large mining farms are managed so that you can inculcate those habits and skills early enough.

 

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Hudson Kisia has been researching and writing content for ElementalCrypto since 2022. He has been writing about crypto, blockchains, and mining for more than 5 years now.

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